Options on the NASDAQ Composite Index offer investors a unique instrument for trading and hedging. Put and call options are available in both full-size contract (QCX) and the mini contract (QCE). Both of these products are the only option products available on the Index that are cash-settled with a European-Type exercise.
Susquehanna Investment Group, (SIG) will act as specialist in this new product. SIG is one of the nation's leading liquidity providers in index options, participating in approximately 15% of all industry specific index option volume. SIG is a specialist in nearly 40 index products and has been the creative force behind some of the industry's most widely cited and actively traded products.
The NASDAQ Composite Index (NASDAQ: IXIC) is a market capitalization-weighted index of all the common stocks listed on NASDAQ. The NASDAQ Composite Index is one of the most well-recognized and widely reported bellwethers in the world for tracking the performance of the U.S. stock market.
"Options on the NASDAQ Composite Index are an important step in making the entire basket of NASDAQ securities accessible to a larger segment of retail investors, institutions and professional traders," said John L. Jacobs, CEO, NASDAQ Financial Products, Inc. "With its long tradition of supporting innovative financial instruments and its success in index options, The Philadelphia Stock Exchange is well-suited to help NASDAQ in making another investment product based on the NASDAQ Composite Index an available to investors." These cash-settled index options are available exclusively on PHLX. Put and call options in both full- and mini-size will be available, all with the European-style of exercise.
Meyer "Sandy" Frucher, Chairman and CEO of the Philadelphia Stock Exchange, said, "We are pleased to add the NASDAQ Composite Index to our stable of exclusively listed index option products. The NASDAQ Composite is one of the most recognized benchmarks in the capital markets, and we're confident that this product will draw substantial interest from professional and retail investors." Frucher continued: "The PHLX is pleased that NASDAQ recognized our reputation as the leader in establishing benchmarks for index options, and this affiliation with NASDAQ will enhance both of our markets and trading communities."
